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Sharing and spreading of risks is the essence of the insurance work.
The scattering of risk start from the moment that the insured transfer it to the insurance company when he buy the insurance.
The insurance company by reinsurance widen the sharing and spreading of risk.
The re-insurers as well by retro-cession and split of their shares with retrocessionaire completing the insurance objective by breaking the risks to a very small units that can financially bear by all participants in the event of losses.
Thanking you , with my best wishes.
